US Postal Service reports $2 billion quarterly loss as cash crunch mounts [View all]

Source: Reuters

May 8, 2026 3:42 PM EDT Updated 10 hours ago


WASHINGTON, May 8 (Reuters) - The U.S. Postal Service on Friday reported a net quarterly ​loss of $2 billion as it faces a growing financial crisis and has ‌warned it could run out of cash as soon as February. USPS said mail volumes fell another 6.3% in the three months ending March 31 as operating revenue rose 2.3% to $20.2 billion ​over the same quarter last year.

USPS last month said it would temporarily ​suspend employer payments for a federal pension program to conserve cash ⁠and plans to raise the price of first-class mail stamps to 82 cents ​from 78 cents, effective July 12. USPS has reported total net losses of $120 billion since ​2007 as first-class mail, its most profitable product, has fallen to its lowest volume since the late 1960s.

"We are in a cash crisis, and we are now taking serious and appropriate ​steps to conserve funds to operate," Postmaster General David Steiner said. "To avoid disruption ​and to sustain our role supporting American commerce and the public, we require urgent Congressional action ‌to ⁠expand our borrowing authority and to address outdated constraints on the organization."

USPS's suspension of employee pension contributions will conserve $200 million in cash every two weeks, or $2.5 billion through September 30, it said.

Read more: https://www.reuters.com/business/autos-transportation/us-postal-service-reports-2-billion-quarterly-loss-cash-crunch-continues-2026-05-08/